Broadcom Inc. (NASDAQ:AVGO)

Gross Profit Margin

The gross profit margin exhibits a generally consistent upward trend from early 2021 through late 2023, increasing from approximately 57.54% to a peak around 68.93%. However, beginning in early 2024, a decline is noticeable, with the margin decreasing to approximately 63.03% by late 2024. After this dip, the margin shows recovery and growth, reaching 67.77% by late 2025. This pattern suggests initial strengthening profitability from core operations, followed by a period of contraction and subsequent rebound.

Operating Profit Margin

The operating profit margin shows a marked and steady increase during 2021 and 2022, climbing from 20.81% to a high of about 45.25% in late 2023. Starting in early 2024, the margin declines significantly to a low near 26.1% by late 2024. Nevertheless, a recovery phase ensues with margins rising again to 39.89% by late 2025. This indicates strong operating performance into 2023, a period of reduced efficiency or increased expenses in 2024, followed by recuperation.

Net Profit Margin

Net profitability similarly increases from 16.01% in early 2021 to a peak above 39% by late 2023. Thereafter, it experiences a sharper decline in early to mid-2024, dropping to roughly 10.88%, the lowest in the observed period. Subsequently, the net margin recovers steadily, achieving over 36% by the end of 2025. The more pronounced net margin variability compared to gross and operating margins points toward additional factors such as tax, interest, or extraordinary items influencing net earnings during the middle periods.

Return on Equity (ROE)

ROE presents a significant climb from 16.49% to a peak at 63.03% by mid-2023, reflecting strong leverage and profitability for shareholders. A substantial and sharp contraction follows, with ROE falling to below 8% by late 2024. There is a gradual recovery afterward, reaching 28.45% at the end of the period. The volatility implies fluctuating net income in relation to equity, possibly driven by changes in profitability or equity base adjustments.

Return on Assets (ROA)

ROA rises steadily from 5.14% early in 2021 to near 19.44% by mid-2023, indicating improving efficiency in asset utilization for profit generation. A steep decline occurs thereafter, bottoming at around 3.03% by late 2024. After this low point, ROA increases again to approximately 13.52% by late 2025. The pattern mirrors that of ROE but with lower overall values, consistent with the normal relationship between asset and equity returns.

Overall, the financial ratios indicate a strong growth phase through approximately late 2023, followed by a period of significant decline across all key profitability and return metrics in early to late 2024. This contraction phase suggests challenges impacting earnings and efficiency, with a discernible recovery starting in late 2024 and continuing into 2025. The cyclical pattern may reflect external economic conditions, operational disruptions, or strategic shifts affecting the company’s financial performance before returning to growth trends.

Net Revenue

The net revenue exhibits a generally upward trajectory across the reported periods, rising from $6,655 million in January 2021 to $18,015 million projected for November 2025. There is a consistent increase quarter-over-quarter, with slight fluctuations around early 2023 where revenue dips marginally before resuming the growth trend. The increase is significant in the latter projection periods, indicating strong business expansion or increased sales volumes.

Gross Margin

Gross margin values also show a strong upward trend, starting at $3,952 million in January 2021 and projected to reach $12,249 million by November 2025. Increases occur steadily across all quarters, closely paralleling the growth pattern seen in net revenue. The acceleration in gross margin matches the revenue increases, suggesting improved operational scalability or enhanced profitability from core activities.

Gross Profit Margin (%)

The gross profit margin percentage rises notably from approximately 57.54% in January 2021 to a peak around 68-69% during 2023, reflecting an improvement in profit efficiency relative to revenue. However, after this peak in 2023, there is a gradual decline in the margin percentage, dropping to around the low 63% range in mid-2024 before recovering somewhat towards the end of the projection period, approaching 67-68% by late 2025. This fluctuation suggests potential variability in cost management, pricing strategies, or product mix over time.

Overall Analysis

The financial data portrays consistent growth in both revenue and gross margin, indicative of expanding business scale and gross profitability. The gross profit margin percentage improvement through 2023 points to enhanced cost efficiency or pricing power. The subsequent mid-term dip in margin percentages could signal increased cost pressures or shifts in the sales mix that temporarily reduce margin quality. The recovery in later periods suggests responsive management actions or market conditions that support margin strengthening. Overall, the company appears to maintain solid profitability growth alongside expanding revenues.

The analysis of the quarterly financial data reveals several notable trends in operating income, net revenue, and operating profit margin over the observed periods.

Operating Income

Operating income shows a general upward trajectory across most periods, indicating improved profitability and operational performance. From early 2021 through early 2024, operating income steadily increased, reaching several peaks in late 2023. However, there is a sharp decline observed in the quarter ending February 4, 2024, followed by a significant recovery and robust growth accelerating toward late 2025, ultimately reaching its highest values.

Net Revenue

Net revenue consistently increased over the entire timeline without significant setbacks. Starting from just above 6,600 million US dollars in early 2021, net revenue exhibits a steady seasonal growth pattern and notable acceleration in 2024 and beyond, surpassing 18,000 million US dollars by late 2025. This positive revenue trend supports and aligns with the rising operating income.

Operating Profit Margin

The operating profit margin experienced an overall growth from around 20.8% in early 2021 to a peak of approximately 45% during 2023, illustrating improved operational efficiency and cost management. After the peak period in late 2023, there is a noticeable decline to roughly 27-30% in early to mid-2024, followed by a recovery and upward trend through 2025. This suggests a cyclical pattern possibly linked to market conditions or internal cost adjustments.

In summary, the company demonstrates strong growth in net revenue alongside increasing operating income for most of the analyzed duration. The operating profit margin reflects initially enhanced profitability and efficiency, followed by a period of contraction and subsequent rebound. The recent sharp fluctuations in both operating income and margin indicate a potentially dynamic operating environment requiring close monitoring. Overall, the company shows an upward trend in financial performance, with notable peaks and recoveries toward the end of the period.

The financial data reveals several notable trends in the company's performance over the observed periods.

Net Income (Loss)

Net income demonstrates a general upward trend from early 2021 through late 2023, increasing from 1,378 million US dollars to a peak of 3,774 million US dollars by January 29, 2023. Thereafter, the net income experiences fluctuations, with a significant drop to 1,325 million US dollars by February 4, 2024, followed by recovery phases that include a sharp loss of 1,875 million US dollars in August 4, 2024. The figure then rebounds strongly, culminating in 8,518 million US dollars by November 2, 2025. These fluctuations suggest periods of volatility or extraordinary events impacting earnings during 2024, amidst an otherwise positive growth trajectory.

Net Revenue

Net revenue consistently increases throughout the entire timeline, starting at 6,655 million US dollars in January 2021 and rising steadily to 18,015 million US dollars by November 2, 2025. The revenue growth is relatively stable, without any substantial declines, indicating robust sales and effective revenue generation strategies.

Net Profit Margin

The net profit margin reflects rising profitability from 16.01% in January 2021 to a peak of 39.31% in October 2023. Thereafter, the margin contracts substantially to 10.88% by August 2024, aligning with the observed net income loss period, before gradually recovering above 30% by late 2025. This pattern highlights strong operational efficiency improvements through 2023, interrupted by a temporary decline in profitability during 2024, with subsequent restoration of profit margins.

In summary, the data outlines a company exhibiting strong revenue growth and improving profitability for the majority of the observed periods. However, 2024 is characterized by significant variability in net income and profit margins, suggesting challenges impacting earnings performance during that year. Despite these fluctuations, the company appears to recover and sustain positive growth and profitability into 2025.

The analysis of the quarterly financial data reveals distinct fluctuations and trends in net income, stockholders' equity, and return on equity (ROE) over the observed periods.

Net Income (Loss)

The net income demonstrated a generally upward trajectory from January 2021 through October 2023, increasing from approximately $1.4 billion to a peak of around $3.5 billion. This steady growth indicates enhanced profitability over this period. However, in the subsequent quarters starting February 2024, there are notable irregularities, including a sharp decline in February 2024 followed by a negative net income of approximately -$1.9 billion in August 2024. Post this loss, the net income surged again, reaching the highest recorded value of about $8.5 billion in November 2025. This volatility suggests significant operational or market challenges followed by a strong recovery phase.

Stockholders’ Equity

Stockholders' equity exhibited minor fluctuations between $20.9 billion and $24.0 billion from January 2021 until October 2023, indicating stable equity levels during this period. Starting February 2024, there was a dramatic increase in equity levels, jumping to approximately $70 billion and continuing to rise steadily to about $81.3 billion by November 2025. This sharp increase could be attributed to capital infusions, retained earnings accumulation following the large net income swings, or revaluation of assets, representing strengthened financial foundations or restructuring activities.

Return on Equity (ROE)

ROE showed a strong growth pattern from 16.49% in January 2021 to a peak exceeding 63% in July 2023, reflecting very efficient utilization of equity to generate profits. However, from February 2024 onwards, there was a significant decline, hitting a low of 7.76%, before gradually recovering to nearly 28.45% by November 2025. This trend corresponds with the fluctuations seen in net income and stockholders’ equity, indicating varying profitability and efficiency in capital deployment during these intervals.

In conclusion, the financial data outlines a period of robust earnings growth and high return efficiency up until late 2023, followed by a period of volatility including a deep loss and reduced ROE in early 2024. Subsequently, the company achieved significant recovery and growth in both profitability and equity by late 2025, suggesting effective strategic or operational adjustments during this phase.

Net Income (Loss)

The net income showed an overall increasing trend from early 2021 through late 2023, rising from $1,378 million to a peak of $3,774 million in January 2023. After this peak, there was a slight decline and fluctuations occurred, including a notable loss of $1,875 million in August 2024. Following this loss, net income rebounded strongly and demonstrated significant growth, reaching a high of $8,518 million by November 2025. This pattern indicates periods of both growth and volatility within the reported timeframe.

Total Assets

Total assets remained relatively stable from 2021 through early 2024, fluctuating within a range roughly between $71 billion and $77 billion. Beginning in early 2024, a notable jump in total assets occurred, reaching approximately $177 billion, after which a gradual decline ensued. By late 2025, total assets stabilized around $171 billion. The sharp increase in early 2024 suggests a significant asset acquisition or revaluation during that period, followed by slight declines but maintaining a higher overall asset base compared to earlier years.

Return on Assets (ROA)

ROA demonstrated a consistent upward trend from 2021 through mid-2023, increasing from approximately 5.14% to a peak near 19.44%. This indicates improving efficiency in asset utilization to generate profit over this period. However, from early 2024, ROA saw a marked decrease, falling to about 3.03% in August 2024, coinciding with the quarter reporting a net loss. Thereafter, ROA gradually recovered, reaching 13.52% by November 2025, though it remained below the earlier peak levels. This pattern of ROA aligns with fluctuations in net income and suggests variable profitability relative to asset base in the later periods.